Dan Plumley has stated that parachute payments are extremely beneficial to relegated teams after Leeds United continued their excellent record against Bristol City.
According to the finance expert, teams that receive these payments are twice as likely to be promoted back to the Premier League, and they can contribute up to eight points per season on average.
It comes after Gary Lineker, Micah Richards, and Alan Shearer admitted it was a “huge” advantage, with Southampton and Leicester also leading the way.
“I’ve been involved in a number of pieces of work on this over the years and all the way back to the mid-2000s,” the football finance specialist exclusively told MOT Leeds News.
“What we’ve discovered during that time span is that, statistically, a team that receives parachute payments is twice as likely to be promoted back to the Premier League as those that do not.
“Also, they are twice as likely to be relegated back to League One, so we know from some of that study that from a points-specific point of view based on the time span, it can result in an extra five to eight points in any given season.
“When you look at those stats, it’s clear where the problem is with parachute payments and the challenges they cause for the Championship; they’re fantastic if you’re receiving them, as Leeds United is, but surely given that volume of work over time.
“What the numbers say, it’s no surprise that you look at the top of the Championship table and Leeds, Southampton and Leicester occupy three of the top four spots.”
Daniel Farke is hoping to bring Leeds United back to the Premier League.
Is Leeds United at a huge advantage?
Parachute payments may benefit Leeds, but they do not hide the fact that half of the Elland Road squad was ripped apart in the first month.
Daniel Farke has had to claw back those above his team since September, and he has done it admirably, ultimately breaking into the top two, however temporarily, on Friday.
It was a fantastic triumph for Leeds, but they will not stop there.
